Figure 27-3 The Following Figure Shows a Utility Function for Dexter

question 148

Multiple Choice

Figure 27-3
The following figure shows a utility function for Dexter.
-Refer to Figure 27-3. From the appearance of the utility function, we know that

• A)Dexter is risk averse.
• B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
• C)the property of decreasing marginal utility applies to Dexter.
• D)Dexter does not enjoy engaging in risky behavior.

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